Asset management:
optimise

United States

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PPM America AER   CER
  2012 £m 2011 £m Change %   2011 £m Change %
Total IFRS operating profit 6 4 50   4 50

Market overview

PPM America (PPMA) manages assets for Prudential’s US, UK and Asia affiliates. PPMA also provides other affiliated and unaffiliated institutional clients with investment services including collateralised debt obligations (CDOs), private equity funds, institutional accounts, and mutual funds. PPMA’s strategy is focused on managing existing assets effectively, maximising the benefits derived from synergies with our international asset management affiliates, and leveraging investment management capabilities across the Prudential Group. PPMA also pursues third-party mandates on an opportunistic basis.

Financial performance

IFRS operating profit in 2012 was £6 million, compared to £4 million in 2011, principally reflecting the increase in funds under management over the period.

At 31 December 2012, funds under management of £64 billion were as follows:

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  AER
  2012 £bn 2011 £bn
  US UK Asia Total US UK Asia Total
Insurance 38 15 1 54 32 15 47
Unitised 2 1 6 9 1 1 5 7
CDOs 1 1 1 1
Total funds under management 41 16 7 64 34 16 5 55

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Curian AER   CER
  2012 £m 2011 £m Change %   2011 £m Change %
Gross investment inflows 1,550 1,684 (8)   1,704 (9)
Revenue 69 51 35   52 33
Costs (54) (45) (20)   (46) (17)
Total IFRS operating profit 15 6 150   6 150
Total funds under management £7.1bn £4.7bn 51   £4.5bn 58

Market overview

Curian Capital, Jackson’s registered investment adviser, provides innovative fee-based managed accounts and investment products to advisers through a sophisticated technology platform. Curian expands Jackson’s access to advisers while also complementing Jackson’s core annuity product lines with Curian’s retail asset management products.

Business performance

At 31 December 2012, Curian had total assets under management of £7.1 billion, compared to £4.7 billion at the end of 2011. Curian generated deposits of £1,550 million in 2012, down 8 per cent from 2011. Curian’s asset growth continues to benefit from its prior investment platform expansions and its significant expansion in 2012 of the firm’s wholesaling team and new distribution territories.

Financial performance

Curian reported an IFRS basis operating profit of £15 million in 2012 compared to £6 million in 2011. This increase was primarily due to higher net revenue from a larger book of assets under management.

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US Broker-dealer National Planning Holdings, Inc. AER   CER
  2012 £m 2011 £m Change %   2011 £m Change %
Revenue 528 491 8   497 6
Costs (510) (477) (7)   (483) (6)
Total IFRS operating profit 18 14 29   14 29

Market overview

National Planning Holdings, Inc. (NPH) is Jackson’s affiliated independent broker-dealer network. The business is comprised of four broker-dealer firms, including INVEST Financial Corporation, Investment Centers of America, National Planning Corporation, and SII Investments.

NPH continues to grow the average business and revenue per representative. By utilising high-quality, state-of-the-art technology, Jackson provides NPH’s advisers with the tools they need to operate their practices more efficiently. At the same time, through its relationship with NPH, Jackson continues to benefit from an important retail distribution outlet, as well as receive valuable insights into the needs of financial advisers and their clients.

Financial performance

NPH generated revenues of £528 million in 2012, up from £491 million in 2011, on gross product sales of £10.5 billion (2011: £8.6 billion). The network continues to achieve profitable results, with 2012 IFRS operating profit of £18 million, a 29 per cent increase from £14 million in 2011. At 31 December 2012, the NPH network had 3,540 registered advisers (2011: 3,636 registered advisers).

 
 

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